Should I Outsource My Accounting?

Should I Outsource My Accounting?So here’s the skinny on outsourcing the accounting function based on my observations over several years serving nonprofits and small to mid-size businesses.

If you’re a small nonprofit or business (maybe less than $300,000 in annual revenue) with a relatively simple financial picture (for example, your organization doesn’t receive government funding or have complex reporting requirements to grantors and lenders), completely outsourcing your accounting to a qualified bookkeeper or CPA who performs your work from their office and hands you a bank reconciliation and financials every month may do the trick.

Get above this level and the picture changes. At this point, it is usually more appropriate if you’re going to outsource to have that bookkeeper or CPA perform the work from your office. This arrangement allows you to ask questions and gain information more timely or consider hiring a qualified person to do the job. Why is this so? Because at this point, you need more real-time information and outsourcing to someone working remotely can mean that you risk becoming too removed from your own numbers.

As you think about hiring a bookkeeper, just remember that while QuickBooks may tout the ability of anyone who can boot up a computer to do the books, it’s wise to hire a qualified bookkeeper with appropriate experience. In addition, bear in mind that the cost of an employee includes not just that individual’s salary and related expenses but also work space, office supplies, computer equipment and other costs. So make sure you’re factoring in ALL the costs in making your decision.

For more information, contact Monica Rockwell at 864-225-8713 or find her on facebook!